HÜVITUSFOND

ANNOUNCEMENT

 

INCREASE IN HOLDING

 

Hüvitusfond will increase its holding in Kawe Plaza, the owner of 

Kawe Plaza office building, from 58% to 68.08%. "It is a successful 

real estate investment for the fund and according to the fund's 

strategy we plan to sell the stake in Kawe Plaza during the next 

two years," Aare Tammemäe, the Chairman of the Management Board of 

Hüvitusfond, said.

 

According to the option contract signed on April 22, 1999, Kawe 

Group Ltd. was obliged to purchase 58% of shares in Kawe Plaza for 

25.5 million EEK from Hüvitusfond by December 20, 1999. If the 

option was not to be realised, Kawe Group Ltd. had to transfer its 

10.08% holding in Kawe Plaza to Hüvitusfond. Despite the 

willingness of Kawe Group Ltd. to realise the option by December 

20, 1999, the money had not been transferred to Hüvitusfond's 

account and therefore the 10.08% stake  will be transferred to 

Hüvitusfond and the fund's holding would increase from 58% to 

68.08%. Other shareholders of Kawe Plaza are Henno Sillaste 

(7.92%), Aino Kurg (12%) and Hella Kink (12%).

 

AS Kawe Plaza was established on July 19, 1996. As of June 30, 

1999, its share capital stood at 16.8 million EEK and the owners' 

equity at 25.5 million EEK. AS Kawe Plaza has an office building at 

Pärnu St. 15, Tallinn. Some 95% of the rentable 5,114 square meters 

is rented out. The office building was completed on November 25, 

1998 and the building is managed by AS Kawe Haldus.

 

 

Jaanus Kosemaa

Head of Public Relations

+372 66 51 800, +372 51 04 614